Ministryof education and science of Republic Kazakhstan
Universityof International Business
ManagementDepartment
TERMPAPER
THEME:Unemployment: reasons and main forms
prepared by: Kulusheva Anar 117group
scientific Adviser: Tulegenov S.V.
Almaty,2008
Plan:
Introduction
Chapter 1. All about Unemployment
1.1 What is unemployment?
1.2 How is unemployment measured?
1.3 Why are there always some people unemployed?
1.4 Working resources and its classification
Chapter 2. Unemployment in practical
2.1 Unemployment Insurance
2.2 Types of unemployment
2.3 Distribution of manpower
Conclusion
List of used literature
Introduction
Why I choose this theme?
We all are living inglobalization epoch. So, slight changing in economy some countries in the oneside of earth, are prove a big influence for economy all countries in theentire world.
Due to, that economyall world’s countries connected with each other and measures undertaken by thiscountries about getting down this problem must be coordination.
Nowadays mortgagecrisis in USA influenced for many countries economy and for Kazakhstan’seconomy too. And afterwards of any economy crisis is unemployment. Today thistheme is very topical.
All countries need tofind measure for saving economy in their country from crisis and find method tolimit quantity of unemployed, because increase quantity of unemployed isaggravate crisis in all country’s economical branches.
Losing a job can bethe most distressing economic event in a person’s life. Most people rely ontheir standard of living, and many people get from their work not only incomebut also a sense of personal accomplishment. A job loss means a lower livingstandard in the present, anxiety about the future and reduced self-esteem. It isnot surprising, therefore, that politicians campaigning for office often speakabout how their proposed policies will help create jobs.
A country that savesand invests a high fraction of its income, for instance, enjoys more rapidgrowth in its capital stock and its GDP than similar country that saves andinvests less. An even more obvious determinant of a country’s standard ofliving is the amount of unemployment it typically experiences. People who wouldlike to work but cannot find a job are not contributing to the economy’sproduction of goods and services. Although some degree of unemployment isinevitable in a complex economy with thousands of firms and millions ofworkers, the amount of unemployment varies substantially over time and acrosscountries. When a country keeps its workers as fully employed as possible, itachieves a higher level of GDP than it would if it left many of its workersstanding idle.
The problem ofunemployment is usefully divided into two categories – the long-run problem andthe short-run problem. The economy’s natural rate of unemployment refers to theamount of unemployment that the economy normally experience.
Chapter 1. All about unemployment
1.1 What is unemployment?
The answer to thisquestion may seem obvious: an unemployed person is someone who does not have ajob. But as economists we need to be precise and careful in our definition ofeconomic categories. If you are in full-time education, for example, you do nothave a full-time job in the usual sense of the word – i.e. you are not infull-time paid employment. And there is good reason: you are studying. Henceyou are not available for work. What if you were not a student but weresuffering from some long-term illness that meant that you were unfit for work.Again, although you would not have a job, we would not say that you wereunemployed because you would not be available for work. From these twoexamples, it seems clear that we need to qualify our original definition of anunemployed person as ‘someone who does not have a job’ to ‘someone who does nothave a job and who is available for work’.
But we still need tobe clear as to what we mean by ‘available for work’. Suppose you were not infull-time employment and were looking for a job and I offered you a job as myresearch assistant for 50 pence a day. Would you take it? If we ignore for amoment the complication that economic research is so interesting that it is itsown reward, you would probably not take the job because the wage rate offeredis so low. At another extreme, suppose you won so much money on the NationalLottery that you decided you would leave university and live off your winningsfor the rest of your life. Would you be unemployed? No, because you would stillbe unavailable for work, no matter what wage rate you were offered. Thus, beingunemployed also depends upon whether you are willing to work (whether you are‘available for work’) at going wage rates.
We are now in aposition to give a more precise definition of what it means to be unemployed:the number unemployed in an economy is the number of people of working age whoare able and available for work at current wage rates and who do not have ajob.
Normally, economistsfind it more convenient to speak of the unemployment rate. This expresses thenumber unemployed as a percentage of the labor force, which in turn can bedefined as the total number of people who could possibly be employed in theeconomy at any given point in time. If you think about it, this must be equalto the total number of people who are employed plus the total number of peoplewho are unemployed.
1.2 How Is unemploymentMeasured?
The claimant Count.One simple way is to count the number of people who, on any given day, areclaiming unemployment benefit payments from the government – the so-calledclaimant count. Since a government agency is paying out the benefits, it willbe easy to gather data on the number of claimants. The government also has agood idea of the total labour force in employment, since it is receiving incometax payments from them. Adding to this the number of unemployment benefitclaimants is a measure of the total labour force, and expressing the claimantcount as a proportion of the labour force is a measure of the unemploymentrate.
Since the governmentalready has all the data necessary to compute the unemployment rate based onthe claimant count, is it is relatively cheap and easy to do. Unfortunately,there are a number of important drawbacks with the claimant count method.
One obvious problemis that it is subject to changes in the rules the government applies for eligibilityto unemployment benefit. Suppose the government gets tougher and changes therules so that few people are now entitled to unemployment benefit. The claimantcount will go down and so will the measured unemployment rate, even thoughthere has been no change in the number of people with or without work! Theopposite would happen if the government became more lenient and relaxed therules so that more people became eligible.
As it happens,governments do often change the rules on unemployment benefit eligibility. Inthe UK, for example, there have been about 30 changes to the eligibility rulesover the past 25 years, all but one of which have reduced the claimant countand so reduced the measured unemployment rate based on this measure. Thefollowing are examples of categories of people who are excluded from the UKclaimant count: people over the age of 55 who are without a job; those ongovernment training programmes (largely school-leavers who have not find a job);anyone looking for part-time work; and people who have left the workforce for awhile and now wish to return to employment (for example women who have raised afamily). Many – if not all – of the people in these categories would be peoplewho do not have a job, are of working age and are able and available for workat current wage rates; yet they would be excluded from measured unemployment inthe UK using the claimant count method.
Labour Force Surveys.The second, and probably more reliable method of measuring unemployment isthrough the use of surveys – in other words, going out and asking peoplequestions – based on an accepted definition of unemployment. Questions thenarise as to whom to speak to, how often (since surveys use up resources and arecostly) and what definition of unemployment to use. Although the definition ofunemployment that we developed earlier seems reasonable enough, the term’available for work at current wage rates’ may be too loose for this purpose.In the UK and many other countries, the government carries out Labour ForceSurveys based on the standardized definition of unemployment from theInternational Labour Office, or ILO. The ILO definition of an unemployed personis someone who is without a job and who is willing to start work within thenext two weeks and either has been looking for work within the past four weeksor was waiting to start a job.
The Labour ForceSurvey is carried out quarterly in the UK and is based on a sample of about60,000 households. Based on the answer to survey questions, the governmentplaces each adult (aged 16 and older) in each surveyed household into one ofthree categories:
· employed
· unemployed
· not inthe labour force (or ’economically inactive’).
A person isconsidered employed if he or she spent some of the previous week working at apaid job. A person is unemployed if he or she fits the ILO definition of anunemployed person. A person who fits neither of the first two categories, suchas a full-time student, homemaker or retiree, is not in the labour force (or,to use ILO terminology, economically inactive). Figure 1 shows this breakdownfor the UK in the autumn of 2004.
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Once the governmenthas placed all the individuals covered by the survey in a category, it computesvarious statistics to summarize the state of the labour market. The labourforce is defined as the sum of the employed and the unemployed:
Labour force = Numberof employed + Number of unemployed
Then the unemploymentrate can be measured as the percentage of the labour force that is unemployed:
Unemployment rate =(Number of unemployed/Labour force) х 100
The governmentcomputes unemployment rates for the entire adult population and for morenarrowly defined groups – men, women, youths and so on.
The same surveyresults are used to produce data on labour force participation. The labourforce participation rate measures the percentage of the total adult populationof the country that is in the labour force:
Labour forceparticipation rate = (Labour force/Adult population) х 100
This statistic tellsus the fraction of the population that has chosen to participate in the labourmarket. The labour force participation rate, like the unemployment rate, iscomputed both for the entire adult population and for more specific groups.
To see how these dataare computed, consider the UK figures for autumn 2004. According to the LabourForce Survey, 28.4 million people were employed and 1.4 million people wereunemployed. The labour force was:
Labour force = 28.4 +1.4 = 29.8 million
The unemployment ratewas:
Unemployment rate =(1.4/29.8) х 100 = 4.7 per cent
Because the adultpopulation (the number of people aged 16 and over) was 47.4 million, the labourforce participation rate was:
Labour force participationrate = (29.8/47.4) х 100 = 62.9 per cent
Hence, in autumn2004, nearly two-thirds of the UK adult population were participating in thelabor market, and 4.7 per cent of those labour market participants were withoutwork.
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Figure 2 shows somestatistics on UK unemployment for various groups within the population, brokendown by ethnicity and sex, also collected by the ONS. A number of points areworth noting. First – and perhaps most striking – unemployment rates for peoplefrom non-white ethnic groups were higher than those for white people, for bothmen and women. Secondly, unemployment rates among ethnic groups vary widely. In2001-02, among men, Bangladeshis had a highest unemployment rate in the UK at20 per cent – four times that for white British men. The unemployment rateamong Indian men was only slightly higher than that for white British men, 7per cent compared with 5 per cent. Unemployment rates for all other non-whitemen were between two and three times higher than those for white British men.
The picture for womenwas similar to that for men, although the levels of unemployment were generallylower. Bangladeshi women had the highest unemployment rate of all at 24 percent, six times greater than that for white British women (4 per cent). Therate for Indian women was slightly higher than for white women at 7 per cent.
Data on the labourmarket also allow economists and policymakers to monitor changes in the economyover time. Figure 3 shows the unemployment rate in the UK since 1971,calculated using the claimant count. Claimant count figures are less reliablethan the Labour Force Survey figures.
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Nevertheless, thefigure is useful in demonstrating that the economy always has some unemploymentand that the amount changes – often considerably – from year to year.
1.3 Why Are There Always somepeople Unemployed?
The unemployment reasons. In the western economicliterature of the reason of unemployment are investigated mainly on the basisof purely economic approach. Thus unemployment is considered as a macroeconomicproblem of not enough full use of a cumulative labour. Often reasons ofunemployment speak imbalance of a labour market or adverse changes this market.
The most known theoryexplaining the reasons of unemployment, the theory of J is. M. Keynes which hasreplaced in the mid-thirties the theory of classics-economists (A. Smit, A. Marshall),explaining the unemployment reason high level of wages. On Keynes, unemploymentis inverse function of cumulative demand. « Employment volume, — Keynes wrote,- by absolutely certain image is connected with volume of effective demand ».The insufficient volume of effective demand causes slackness of investmentprocess and, hence, impossibility of maintenance of employment that conducts toI grow unemployment. An exit from this situation Keynes saw in increase of arole of the state in formation of cumulative demand at the expense of increasein the State expenditure, first of all – on the investment goods. Keynes’scritics, representatives of neoclassical school, see the unemployment reasonsjust in that state policy which the developed countries spent« under recipes» Keynes.So, for example, F. Hajek considered that unemployment « is direct result of ashort-sighted full employment policy which you spent to a current of lasttwenty five years ». Growth of the State expenditure, on F. Hajeka’s opinions,inevitably conducts to inflation which, having reached a critical point, itselfbecomes the reason of the increased unemployment. An exit from this closed circleone – to stop an inflationary full employment policy. Certainly, at the firststage it will lead to sharp jump of unemployment, but it, on Hayek’s idea, willgive the chance to reveal all defects in work placing, to develop and carry outnot inflationary methods the program of maintenance of a high and stableoccupation level. Monetarists led by M. Fridmenom have put forward the conceptof «natural» unemployment. To which they carry so-called frictionalunemployment. Frictional unemployment covers the workers changing for those orother reasons a place of work, for example, in search of higher earnings orwork with большей by prestigious ness, morefavorable working conditions, or migrating in connection with necessity ofchange of a residence. To natural unemployment carry also structural, caused bychanges in structure of public manufacture under the influence of scientificand technical progress and perfection of the organization of productions. Thistype of unemployment also is time (though also more long, than frictionalunemployment) as disappearances of one manufactures (branches) it isaccompanied by rapid growth of others. Problem only in that, how fast theunemployed can adapt to the changed conditions on a labour market. The conceptof «natural unemployment» is supported by almost all economists, includingNeokeynesians. Disputes go only that causes growth of unemployment abovenatural level, — insufficiency of an aggregate demand or the regulating policyof the state infringing the „natural“ mechanism of formation ofemployment and a wages in the market of work. Thus, the western economistsrecognize that unemployment – the integral attribute of market system of aneconomy, it is inevitable, and in the „natural“ variant even is usefulto maintenance of necessary flexibility of a labour market. But till now notone economic doctrine is not indisputable from a point of sight of anexplanation of the reasons of unemployment and employment. All present sightsat the unemployment reasons can be grouped in the next image.
First, ratherredundant population, „superfluous“ in comparison with the reachedlevel of national production can become the unemployment reason. This factor ofunemployment especially hardly affects in the developing countries.
Secondly,unemployment can be result of changes in economy structure, including – intechnologies (structural unemployment). This unemployment is time as on changeto old branches and productions (technologies) the new come.
Thirdly, unemploymentcan was temporary to increase because of natural desires of people to find work»to liking” and with the best working conditions and payments(frictional unemployment). Fourthly, especially strong increase in a rate ofunemployment results from cyclic recession in economy (cyclical unemployment).This kind of unemployment is the most dangerous as there is a vicious circle:Production falling – unemployment – reduction of the general level of incomes –aggregate demand decrease – production falling – unemployment etc. Fifthly, incertain cases the unemployment generator can become active interference of thestate and trade unions in relations between the hired worker and the employerthat leads to market inflexibility of wages and forces businessmen to solve aproblem of achievement of the maximum profit by employment reduction. All thesereasons of unemployment represent without delay the factors influencing for thesize and dynamics of unemployment. The basic sources of unemployment are notmarket proportions and the conditions developing on a labour market since alabour market only reflects proportions existing at present between demand andthe labour offer, but direct sharing in their formation does not accept. Theseproportions depend on the processes which are outside of the market of work.The market only finds out them, shows unemployment, and does its visible forcompany.
1.4 Working resources and itsclassification
Statistics of manpower. Manpower is persons of bothsexes who potentially could participate in production of the goods andservices. They are significant in the conditions of market economy as integratesuch categories, as the economically active population including of taken bothunemployed persons, and economically inactive population at able-bodied age.Number of manpower is advanced proceeding from number of able-bodied populationat able-bodied age and working persons outside of able-bodied age. The personof work possesses a main role in economic activities development, perfection ofits organization and management for the purpose receptions of the greatestreturn from the creative work. People invent and make instruments of labour andproduction assets, will organise rational division and labour co-operation atvarious levels of productive activity, beginning from a job and finishing theorganization within the limits of all national economy. The labour as set ofphysical and spiritual abilities of the person is main productive force ofcompany and constitutes manpower of all enterprises and the establishmentsbelonging to various branches of a national economy. Manpower of each made unitis represented by a part distributed on branches of a national economy ofmanpower. The statistical characteristic of availability of a manpower of theenterprise, establishment, association, an industry, agriculture, building ortransport separately or all economic complex, is the list volume of employmentin them workers. The statistics of each branch of a national economy studiesthe following questions connected with application of a living labour:
1. Statistics ofmanpower and their use.
2. Statistics oflabour efficiency.
3. Statistics ofwages.
The statistics ofmanpower is divided in turn on two parts:
1. To the statisticanof a labour – the primary goals is studying of number and structure of workers,studying of change of number of workers; an estimation of security of theenterprise a manpower; studying of job management and use of workers oncorresponding qualification; labour discipline studying.
2. To the statisticanof working hours — problems is definition of a combined value of fulfilledtime; studying of use of working hours, and revealing of losses of workinghours
Statistics of structure of manpower. In force of distinctionmanpower the structure of workers at the enterprise is studied in followingdirections:
1) on a branchaccessory;
2) on work plots;
3) on the functionsexecuted in the course of production.
Depending on a branchaccessory of division of the enterprises the staff of primary activity orindustrial and production staff and staff of the nonindustrial organizations allocate.On executed functions workers of industrial and production staff are subdividedinto six categories: workers, pupils, engineering employees, employees, juniorattendants and workers of protection. The most numerous and basic part ofstructure of workers are workers. To workers, directly linked with production,and also the persons taken by repair and care by the equipment, materialdelivery persons concern jobs etc. The persons trained on production of this orthat trade of workers and receiving wages concern pupils. Engineering employeesconstitute that part of the enterprise which carry out the organisation and amanagement industrial and engineering procedure. The workers performingadministrative and managerial and economic functions concern employees. Tojunior attendants carry the workers dealing with service of industrial andnon-productive premises. Depending on a role in the course of productiondiscriminate the basic and auxiliary workers. To the cores carry the workers,directly taken by production manufacturing, leading to action machinery andplant. The workers taken by service of the basic workers concern the auxiliary,the equipment, on automation of their work. Working the basic and auxiliary arein turn characterised by degree of mechanisation and automation of their work.
The major statisticsof number of workers of the enterprise is the size of average list number ofworkers. Average list number of workers of the enterprise or the shop, acceptedfor the partial working day, is estimated so: total number of the man-hoursfulfilled by these workers for month, is divided into the established durationof the working day and the number of the fulfilled man-days received thus,divide into number of the working days in a month on a calendar.
For example, for amonth in which on a calendar 22 working days, are fulfilled by workers of 12500man-hours. Then at five-day working week the number of the fulfilled man-dayswill constitute 1524, as private from division 12500 on 8,2; т.е.12500:8,2.Average list number of the workers accepted for the partial working day(1524:22=69 the people) Will constitute 69 persons. Thus, average list numberof the workers accepted for partial working week, advance as the relation ofthe man-days fulfilled by these Workers to number of the working days in the takenaway month on a calendar. And the average list number of workers workingfull-time is calculated as average arithmetic simple during a certain intervalof time (month, quarter, year). We will assume that for the first half of theyear average list number of industrial and production staff has constituted 730persons, and for July — 710, August 700. Average list number of industrial andproduction staff for January — August (8 months) Will equal:(736х6+710х1+700х1):8=5826:8=728 the economic statistics gives the Basicattention to that part of a manpower which participates in social work. Notless important problem there is a definition of the taken workers on nationaleconomy branch. Two groups of a manpower are allocated: taken by physical workand taken by intellectual labour.
Despite the fact thatwhat the labour productivity level increased all over the world over the last10 years, there are big ruptures in the data on industrial and to developingcountries. Though the states of Southern and East Asia, and also the Centraland Southeast Europe already catch up with EU and the USA on this indicator, asa whole the situation looks not in the best way. A poverty principal cause inthe world the International job management (SQUANDERER) named inefficient useof a potential production of workers.
From the reportcontaining key indicators of a labour market, published on September, 2nd theSQUANDERER it is visible that the USA still is the leader on productivity onone worker following the results of 2006. It is necessary to note essentialgrowth of this indicator for the past of 10 years in East Asia whereproductivity has increased in 2 times.
Furthermore rupturein productivity between the USA where an added value on one worker (the highestin the world) has constituted $63,885, and other developed economy followingStates continues to increase: Ireland ($55,986), Luxembourg ($55,641), Belgium($55,235), France ($54,609).
However Americanswork more hours per year, than citizens of other developed countries. If tolook at the cost added to one workers in an hour the best labour efficiency inNorway ($37,99), it follow the USA ($35,63) and France ($35,08).
The labour efficiencyincrease generally grows out more of an effective utilisation of a combination(combination) of work, the capital and technology. Insufficient investments inhuman and a fixed capital along with application of old technologies can leadto partial use of labour potential in the world. «Huge rupture betweenproductivity and riches is at the bottom for anxiety, — the general directorSQUANDERER Juan Somavija has declared. — the Increase in labour efficiency ofworkers with low yields in the poor countries leads to reduction of essentialdeficiency of a labour in the world».
In East Asia wherethe highest growth of a performance level is recorded, the output having on oneworker, has grown with 1/8 to 1/5 from level of the industrial countries. Inthe report it is said also that in South East Asia and in Oceania thisindicator in 7, and in Southern Asia in 8 times more low in comparison with thedeveloped states. In Central Asia, Latin and Central America the added valuehaving on one worker, in 3 times is less, than in the EU countries and the USA,and in the countries of the Central and Southeast Europe, in the CIS thisindicator in 3,5 times more low. The biggest rupture in comparison with thestates with industrial economy is observed in the Central Africa where theperformance level in 12 times is less.
Thus, the nextpublication «Key indicators of a labour market» gives wider submission that inthe SQUANDERER name «comprehensible deficiency of jobs» in the world. « Worthy»work ensures necessary productivity to the employer who in turn supportssafety precautions, grants fair payment and social protection by worker and totheir families, thereby promoting a normal life of company.
Hundred millions menand women work, applying all forces, however conditions in which they work, donot allow them to ensure own families to the most necessary. People continue tolive below the poverty line, every day falling all below this line. The generaldirector the SQUANDERER Mr. Somavija has declared necessity of increase inlabour efficiency for the poor countries that would help people to earn more.
By data theSQUANDERER of 1,5 billion people in the world — or third of able-bodiedpopulation — not completely use the working potential. The problem consiststhat people in the poor countries want, but has no possibility to work. Theincome on one member of the family there does not exceed $2, it iscatastrophically low figure. More than half of all taken are subject to threatto remain below the breadline. The majority of such people works in shadoweconomy and does not get practically under any protection. In the CentralAfrica and Southern Asia of 70 % taken are in similar position.
Besides, in thereport the situation which has developed on labour markets is reflected. So,about half of able-bodied population all over the world does not leave onlabour markets of the countries. Over the last 10 years the passive behavior onlabour markets was more often fixed at women, rather than at men. Only 2 from10 men do not show any activity while at women such position meets in half ofcases.
«Key indicators of alabour market» into which have entered 20 various indicators reflecting asituation which have developed on a labour market with its productivity,working conditions, wages and indemnifications, represent a real picture ofthat as a whole occurs to a labour in the world.
Chapter 2. Unemployment in practical
2.1 Unemployment Insurance
One government policythat increases the amount of frictional unemployment, without intending to doso, is unemployment insurance (or, as it is called in the UK, nationalinsurance). This policy is designed to offer workers partial protection againstjob loss. The unemployed who quit their job, were fired for just cause or whohave just entered the labour force and not eligible. Benefits are paid only tothe unemployed who were laid off because their previous employers no longerneeded their skills.
While unemployedinsurance reduces the hardship of unemployment, it also increases the amount ofunemployment. The explanation is based on one of the Ten Principles ofEconomics. Because unemployment benefits stop when a worker takes a new job,the unemployed devote less effort to job search and are more likely to terndown unattractive job offers. In addition, because unemployment insurance makesunemployment less onerous, workers are less likely to seek guarantees of jobsecurity when they negotiate with employers over the terms of employment.
Many studies bylabour economists have examined the incentive effects of unemploymentinsurance. In one US study, when unemployed workers applied to collect unemploymentinsurance benefits, some of them were randomly selected and offered each a $500bonus if they found new jobs within 11 weeks. This group was then compared to acontrol group not offered the incentive. The average spell of unemployment forthe group offered the bonus was 7 per cent shorter than the average spell forthe control group. This experiment shows that the design of the unemploymentinsurance system influences the effort that the unemployed devote to jobsearch.
Several other studiesexamined search effort by following a group of workers over time. Unemploymentinsurance benefits, rather than lasting forever, usually run out after sixmonth or a year. These studies found that when the unemployed become ineligiblefor benefits, the probability of their finding a new job rises markedly. Thus,receiving unemployment insurance benefits does reduce the search effort of theunemployed.
Even though unemploymentinsurance reduces search effort and raises unemployment, we should not necessarilyconclude that the policy is a bad one. The policy does achieve its primary goalof reducing the income uncertainty that workers face. In addition, when workersturn down unattractive job offers, they have the opportunity to look for jobsthat better suit their tastes and skills. Some economists have argued thatunemployment insurance improves the ability of the economy to match each workerwith the most appropriate job.
The study ofunemployment insurance shows that the unemployment rate is an imperfect measureof a nation’s overall level of economic well-being. Most economists agree thateliminating unemployment insurance would reduce the amount of unemployment inthe economy well-being would be enhanced or diminished by this change in policy.
2.1 Types of unemployment
There are variouskinds of unemployment, each of which is generated by the reasons. Todayeconomists prefer to speak not about unemployment in general, and to allocateits specific kinds:
· frictional
· structural
· cyclic
· seasonal
· voluntary
Frictional unemployment exists even in thecountries enduring rough economic blossoming. Its reason consists that to theworker who dismissed from the enterprise or has left it of the own free will,some time to find a new workplace is required. It should suit it both by thenature of activity, and on payment level. Even if in the work market suchplaces to eat, find them it is possible usually not at once. One people feelcapable to perform more difficult and highly paid work and search for it,others are convinced that do not correspond to requirements of the workplaceand should look for work with payment more low. In a free market society alwaysthere is a certain quantity of people which for various reasons search foritself for more suitable work Besides, on a labour market always there areunemployed who search for work for the first time (youth, the women who havegrown up children, etc.). Such people also are considered at definition oflevel of frictional unemployment. These processes promote increase ofefficiency of use of labour resources, their more rational distribution. Theeconomic science considers frictional unemployment as the phenomenon normal andnot causing alarm. Moreover frictional unemployment is simply inevitable innormally organised economy. Growth of frictional unemployment can cause anumber of the reasons:
1) lack ofinformation of people on possibility to find work on the speciality and witharranging level of payment in concrete firms;
2) the factors objectivelyreducing mobility of a labour. For example, the person has not found work inthe city, but cannot move in other city where such work is, because ofbackwardness of the market of habitation or absence of a residence permit. Suchsituation is characteristic for Russia that is unprofitable distinguishes adomestic labour market from a labour market of the western countries.
3) Features ofnational character and a way of life. Frictional unemployment above in thosecountries which citizens prefer to live all life in the same settlement, thatis differ the lowered mobility. At such way of life (characteristic and formany Russians) labour overflows between regions are reduced.
Structural unemployment. The manufacture structurecannot remain invariable. As a result of scientific and technical progress,technological changes, the labour demand structure varies also. The requirementfor one kinds of trades is reduced, and other specialities disappear at all.But there is a demand for new trades. Earlier not existing. Such unemploymentalready where is more painful for people, than frictional.
Occurrence ofstructural unemployment means that many people should master new trades, toavoid structural unemployment it is impossible. It is connected by thattechnical progress all time gives rise to the new goods, technologies and eventhe whole branches (manufacture of personal computers, laser disks and fiberoptics, for example, concerns them). As a result the labour demand structurestrongly varies. And people with trades unnecessary more in former quantityappear out of work, recruiting of ranks of the unemployed. For example, importto Russia considerable number of personal computers has led to refusal of useof the big COMPUTERS which service needed a considerable quantity ofprogrammers. Together with computers new «generation» of the softwareproducts, allowing to communicate with car without the intermediary – theprogrammer from abroad has come. To keep or get a job, programmers of oldschool had to be retrained, seize urgently modern languages of programming andnew software packages. Changes in demand structure appear today more and moreessential. The American experts, making the forecast of development of a labourmarket in the USA till the end of a century, have found out inevitability ofserious changes on it. It has appeared that to 2000г. The number of farmers in the countrywill be reduced to 900 thousand persons, and the share occupied in the industrywill fall from 18 % in 1990г. To 9,7 % to the XXI-st centurybeginning. The overwhelming part of hired workers will work in any branches ofservices, including 43 % — in computer science sphere. The number of workplacesfor the people owning following specialties will fastest grow:
1) the bookkeeper orthe auditor
2) the mechanicalengineer
3) the staff nurse
4) the expert incommunications of the companies with the public
5) the programmer forpersonal computers and the computer techniques
6) the therapistspecializing on occupational diseases
7) technician onservice of medical equipment.
Structuralunemployment, at all morbidity, also can not excite the country, but only inthe event that total number of empty seats does not concede to number of thepeople searching for work, though and having other specialities. If in generalit is less than workplaces, it means. That in the country there was a third,most unpleasant form of unemployment — cyclic.
Cyclic unemployment is inherent in the countriesenduring the general economic recession. In this case the crisis phenomenaarise not on separate, and practically in all commodity markets. Difficultiesare endured by the majority of firms of the country that is why mass lay-offsbegin almost simultaneously and everywhere. As a result total number of freeworkplaces in the country appears less numbers of the unemployed. In revivaland lifting phases there are new working places, and unemployment resolves.Sometimes to a category of the unemployed carry (though and it is not quitelawful) seasonal workers. They remain without work of that some kinds ofactivity can be carried out only during the certain periods of year. The mosttypical example is the agricultural workers occupied during the period ofharvesting, and in the rest of the time interrupted casual earnings.
Voluntary unemployment is caused by that in any societythere is a layer of people which on the mental warehouse or for other reasonsdo not wish to work. Also it arises in those cases when the worker leaves onown desires if it is dissatisfied with level of payment of its work, workingconditions, or any other circumstances. Studying unemployment problems, theeconomic science has come to a conclusion: frictional and structural unemployment– the phenomena normal and do not represent threat for country development.Moreover, without them development is simply impossible. After all if allworkers are occupied how to create new firms or to expand manufacture of thegoods which use in the market the raised demand except that, unemploymentpresence forces people to be afraid of loss of the workplace and induces themto work more производительно and is qualitative. From thesepositions it is quite possible to name unemployment stimulus to the best work.That is why as full employment in the majority of the developed countries ofthe world understands absence of cyclic unemployment at existence ofunemployment frictional and structural. I.e. when unemployment in the countrycorresponds to the natural norm. Accordingly, the full employment level isdefined by the equation: the Full employment = labour Х (1 natural norm of unemployment). Foreach country natural norm of unemployment develops in own way, and uniformvalue for it does not exist. For example, in the mid-seventies the Americaneconomists considered that for their country this norm makes an order of 4 %.Today this level has risen to 5-6 % that is connected with change ofdemographic structure of a labour and институциональными changes. The today’s information on the unemployment scales, given byGoskomstat, underestimates an original rate of unemployment approximately in 5times that creates additional alarm and without that to astable economy ofRussia. But level understating, in the majority cases, occurs because ofdiscrepancies in the course of gathering of the information on the unemployed.
The internationalorganization of work (SQUANDERER) had been developed a technique reducing to aminimum of such discrepancy. It consists in the following: data gathering onthe basis of monthly interrogations, about 50 thousand casually chosen family economiesis made. Questions concern following problems: whether that or other individualhad work last week; whether he tried to find work; what is the time it hasalready spent for employment; it undertook what actions with that end in view.Proceeding their answers to questions, to the unemployed carrying persons ismore senior 16 years, which during the considered period: had no work(profitable employment); were engaged active in work searches; were ready tostart to work. Not occupied in a social production and not aspiring to get a jobpersons do not consider at definition of a number of labour (that iseconomically active population). Many people from this category can work, butdo not do it owing to those or other reasons. They are students of daybranches, pensioners, housewives. Children aged till 16 years and the prisonersenduring punishment in prison are automatically excluded from a category ofeconomically active population. The special category is represented by militarymen. The number of the persons consisting on the valid military service, isincluded into size of a cumulative labour, and at definition of the number oflabour occupied in civil sector of economy, this category of economicallyactive population is not considered. That affects in calculation of the generalnorm of unemployment and norm of unemployment for civil sector. Theseindicators reflect relative density the unemployed in number of a cumulativelabour and a number of labour of the given sector accordingly.
The divergencebetween sizes constitutes about the tenth share of percent, and in publicationsthere is a last indicator more often. Nevertheless the methodology of theInternational job management cannot overcome some discrepancies connected withmeasurement of level unemployment in connection with what official definitionof norm of unemployment can be criticized both for reduction of real numbers ofthe unemployed, and for its exaggeration. One of ways avoidance of ambiguitiesis comparison official definition of the unemployed with concepts «idle»and «incapable to find work».
«The Unemployedand „idle“. In definition practice безработного and taken essentially differ from concepts» working«and» idle “. On the one hand, many working do not get incategory taken, for example, housewives. They are considered as taken only whenthey receive for the work monetary compensation. Besides, the number occupieddoes not join working children till 16 years irrespective of, whether theyreceive wages for work or work free of charge. On the other hand, at all each «idle»gets in a category the unemployed. It is possible to carry many people who arenot doing anything to them to find to itself new work. Those who are absentduring the given moment on a job because of illness or bad weather, and also sonamed «partially taken» (working incomplete the working days etc. arenot considered as the unemployed).
«Unemployed»and «incapable to find work». These similar concepts actually alsoare only approximate. For example, the people temporarily dismissed from aplace of service, and also the works which have found a place get to number ofthe unemployed and assuming to start to work within a month. Hardly it ispossible to tell also about «inability to find work» at those who hasleft a former place in searches of the best variant.
2.3 Distribution of manpower
Manpower — a part ofthe population of the country, having physical development, mental facultiesand the knowledge necessary for employment by socially useful work. The sizesof manpower depend on a population, a mode of its reproduction, structure on afloor and age. The basic part of manpower of the country is constituted by itspopulation at able-bodied age, and also teenagers and persons of the pensionage, capable to work Allocate still other category — the people reallyparticipating in production of goods or non-productive sphere, — economicallyactive population. It is important to consider and a parity between anable-bodied part of the population, on the one hand, and idle (children and oldmen) — with other. It name demographic load. On the average in the world of 100able-bodied people ensure the earnings of 70 children and pensioners. Indeveloping countries such indicator frequently constitutes 100 on 100, whereasin Japan — 100 on 41. In Russia, Belarus, in Ukraine, in the Baltic Statesdemographic load is approximately equal world average.
The crisis which hasbegun as bank, by degrees gets into all spheres of economy. Experts of thepersonnel market notice that the first wave of reductions has already begun.First of all, send in no-charge holidays so-called support staff, differently –the experts attending very wasteful for companies at present to projects withthe delayed date received of profit. Reduction cost cutting also has begun,many projects were freezed.
Conclusion
As the major indicator– the indicator of is social-demographic safety the rate of unemployment acts.Unemployment occurrence is connected with development of market relations and,first of all, a labour market. As the material precondition of unemploymentslump in production and structural transformations in economy act. Unemploymentscales are evaluated on a number of criteria: unemployment registration in anemployment service; незанятость and an active search of workirrespective of the registration fact (on methodology the SQUANDERER); absenceof work, irrespective of availability of the official status of employment (incase of holidays and the partial working day at the initiative of theemployer).
Obviously, the moreoperative and short-term character is carried by this or that problem ofemployment, the above probability of use of direct administrative influence.Main strategic targets of regulation of employment should be increase ofeconomic and social efficiency of employment at the expense of change of its structure,forms, creation of conditions for development of a human capital of thecountry, perfection of economic relations of employment. For this purpose it isnecessary to reduce level of redundant employment at the enterprises, flexiblyto redistribute liberated workers in other branches and employment kinds.
The care of the stateof achievement in the country of the most complete and effective employment asimportant social warranty for economically active population is the majoraspect of state regulation of the labour market which mechanism of formationwill be constantly improved with reference to new conditions of development ofmarket economy, structural reorganization of production, formation of effectivesocial policy.
List of used literature
1. EconomicsN. Gregory Mankiw and Mark P. Taylor
2. Economicalmentality Heine. P 2002
3. AlekseyVojlukov, it is published in «the Business journal Online», on September, 10th,2007.